Hiya. I bought into a very established international car body repair business. It was fine (got very expensive near the end) and I worked it until over my contracted period before I moved home way out of the area. The very best advice I received was from an early customer who had had McDonald’s stores in the past. He said to me “try to remember you will never be rich doing this, what you’ve done is buy yourself into a salary”. He was fairly on the mark. With that in mind, it really worked for me. I’d come out of a dreadful corporate environment and the freedom the franchise gave me was life changing. I did have a very busy area which has to be considered. Others were not so lucky. Cheers
Dan, great video. TH-cam etc. is full of "selling the dream" videos while there are very few videos that are critical so I congratulate you for joining the minority! The common theme for these 3 businesses fields is that there is a huge number of people making money selling the dream. As well as having high costs of sales, I get the impression that drop shipping is absolutely flooded with the 2 main winners being Amazon (profits) and the public (lower prices). Franchising again adds a layer of cost onto a business. As a consumer I generally avoid franchised business as I know they will be pricey (except McDonalds!). In property, I know that deal sources pay huge amounts of money to Facebook, meanwhile I can see that most of what sourcers are pushing is not below market value once they have had their cut. There are lots of courses out there teaching people how to do Facebook property ads the right way. This breeds competition, increasing Facebook prices at the expense of sourcer margins. Rent to Rent strikes me as a low margin high effort business where you are going to have to work really hard for your money. Keep up the good work!
I wish I’d seen this video 3 years ago. I might have avoided wasting 2 years on a low margin franchise in an incredibly competitive field. Only 5 months to go until I’m out of insolvency!
@ Thank you. I would also add that it’s easy to be fooled into thinking a business will be successful because you have SOME of the requirements… just because you can make something well doesn’t mean that you will be able find enough customers to teach to do the same (for example) - especially if the market place is saturated or you have limited capital.
I agree - it's not all rainbows and unicorns as they say. So many TH-cam videos saying its all so easy - a passive income etc often selling courses .... I'm in the Amazon space.... ! So No.1 on your list 😀 and the costs are going up all the time - understock, overstock, storage, referral fees, ppc, delivery, lost stock etc etc. Managing an Amazon seller account is a skill in itself. Another great informative video. Await the next video on 3 potential great ones.
Rent 2 Rent you can do it with no money down. Deal sourcing you can make a lot of money. It’s not the courses or scheme it’s usually the individual not prepared to work hard enough. It’s there to succeed if you want to. The other two points I agree with but again it’s usually the person whose lazy looking for simple money than it is the scheme
Agree, as I mentioned in the video we have seen people make them work, just so few. Like any business if you have the will and skill, anything is possible.
Thanks for all your videos. Appreciate your time and effort. All the calculators for benfits of trading via an Ltd company seem to be if you can withdraw around 50K £. If we need to withdraw say a 100K net per year, is it still tax efficient to be in an outside IR35 or at that point , inside and outside even out? Could you do a video on this please?
Will see if it’s something that would work in a video! One thing though, it’s rare from a tax point of view that being inside IR35 will work out better.
@HeelanAssociates I have had very mixed feedback on it. I've been told , the moment an individual goes above 100/ 125K , top tax bracket in income inside IR35, it works out the same / similar outside IR35, unless one can live with lower cash flow and take below 100K in a tax year, ideally even below the 40% tax threshold of £50K.
Literally an add on this video about how I can make £1M/year in property with limited/no money and limited experience. As a contractor - it is not a simple industry.
![SHOULD I BE A LIMITED COMPANY [2024/25]](http://i.ytimg.com/vi/7qJPOxVlFgk/mqdefault.jpg)
Hiya.
I bought into a very established international car body repair business. It was fine (got very expensive near the end) and I worked it until over my contracted period before I moved home way out of the area.
The very best advice I received was from an early customer who had had McDonald’s stores in the past.
He said to me “try to remember you will never be rich doing this, what you’ve done is buy yourself into a salary”. He was fairly on the mark.
With that in mind, it really worked for me. I’d come out of a dreadful corporate environment and the freedom the franchise gave me was life changing.
I did have a very busy area which has to be considered. Others were not so lucky.
Cheers
Nice video - thank you! I’m guessing people have some success with TH-cam, as you have a TH-cam channel 😊
TH-cam is a very unique beast, but we certainly work with clients who do it well.
Another excellent video Dan! Nice work. Looking forward to the next vid!
Glad you enjoyed!
Great video. Thanks Dan. Made me think If its in a TH-cam advert, its a bad business idea. You pretty much talked about every advert i see on here.
Ha good way of thinking about it!
1.Drop Shipping (Amazon)
2.Property Investments (rent to rent etc)
3.Franchises (small ones)
Spoilers :-) (and its deeper than that!)
Dan, great video. TH-cam etc. is full of "selling the dream" videos while there are very few videos that are critical so I congratulate you for joining the minority!
The common theme for these 3 businesses fields is that there is a huge number of people making money selling the dream.
As well as having high costs of sales, I get the impression that drop shipping is absolutely flooded with the 2 main winners being Amazon (profits) and the public (lower prices).
Franchising again adds a layer of cost onto a business. As a consumer I generally avoid franchised business as I know they will be pricey (except McDonalds!).
In property, I know that deal sources pay huge amounts of money to Facebook, meanwhile I can see that most of what sourcers are pushing is not below market value once they have had their cut. There are lots of courses out there teaching people how to do Facebook property ads the right way. This breeds competition, increasing Facebook prices at the expense of sourcer margins. Rent to Rent strikes me as a low margin high effort business where you are going to have to work really hard for your money.
Keep up the good work!
Great write up Andrew! Thanks for sharing
Hit the nail on the head, rhe only ones who do ok r the 1s selling the dream!
I wish I’d seen this video 3 years ago. I might have avoided wasting 2 years on a low margin franchise in an incredibly competitive field. Only 5 months to go until I’m out of insolvency!
Sorry to hear that! Thanks for sharing the experiences, hopefully others can learn the challenges.
@ Thank you. I would also add that it’s easy to be fooled into thinking a business will be successful because you have SOME of the requirements… just because you can make something well doesn’t mean that you will be able find enough customers to teach to do the same (for example) - especially if the market place is saturated or you have limited capital.
Will you be doing a video on businesses that might work or new businesses which have risen to the market due to technology developments
We do have a vid coming shortly on businesses we see doing well
I agree - it's not all rainbows and unicorns as they say. So many TH-cam videos saying its all so easy - a passive income etc often selling courses ....
I'm in the Amazon space.... ! So No.1 on your list 😀 and the costs are going up all the time - understock, overstock, storage, referral fees, ppc, delivery, lost stock etc etc.
Managing an Amazon seller account is a skill in itself.
Another great informative video.
Await the next video on 3 potential great ones.
That doesn't sound very passive, more full on like any other business.
Thanks for sharing Adam!
Rent 2 Rent you can do it with no money down. Deal sourcing you can make a lot of money. It’s not the courses or scheme it’s usually the individual not prepared to work hard enough. It’s there to succeed if you want to. The other two points I agree with but again it’s usually the person whose lazy looking for simple money than it is the scheme
Agree, as I mentioned in the video we have seen people make them work, just so few. Like any business if you have the will and skill, anything is possible.
A lot of sense spoken here
Glad to hear it :-)
Thanks for all your videos. Appreciate your time and effort. All the calculators for benfits of trading via an Ltd company seem to be if you can withdraw around 50K £. If we need to withdraw say a 100K net per year, is it still tax efficient to be in an outside IR35 or at that point , inside and outside even out? Could you do a video on this please?
Will see if it’s something that would work in a video! One thing though, it’s rare from a tax point of view that being inside IR35 will work out better.
@HeelanAssociates I have had very mixed feedback on it. I've been told , the moment an individual goes above 100/ 125K , top tax bracket in income inside IR35, it works out the same / similar outside IR35, unless one can live with lower cash flow and take below 100K in a tax year, ideally even below the 40% tax threshold of £50K.
Literally an add on this video about how I can make £1M/year in property with limited/no money and limited experience.
As a contractor - it is not a simple industry.
Haha the algorithm loves it 😂